The Puget Sound office market recorded a stronger start to 2026, with a recent CBRE report showing 356,000 square feet of positive net absorption in the first quarter. The result marked a quarter-over-quarter improvement of 334,000 square feet, signaling that tenants continue to take space across the region despite elevated vacancy.
According to the report, the Eastside submarket remained the region’s standout performer. Key indicators on that side of the lake continued to trend in the right direction, with vacancy easing, availability tightening, and ongoing demand from large-block office users. These dynamics have been supported in part by continued interest from Artificial Intelligence-related technology companies that are expanding or solidifying their footprints.
Recent leasing commitments in downtown Bellevue illustrate this demand. Uber Technologies, Inc. signed a long-term lease at Four106, a 490000-square-foot office tower in the city’s core. In a separate move, OpenAI expanded its Bellevue presence by adding 223,000 square feet at City Center Plaza. Both commitments underscore that well-located Eastside assets are still able to secure sizeable tenants even as the broader office sector recalibrates.
Market-level statistics for the Puget Sound office sector point to modest but measurable improvement. Regional vacancy edged down to 28.3% in Q1 2026, compared with 28.6% at the close of Q4 2025. At the same time, the overall market availability rate declined from 29.4% to 29.0%, suggesting that some previously marketed space has been leased or withdrawn from the market.
As fundamentals tightened, asking rents also moved slightly higher. The overall average direct asking lease rate finished Q1 2026 at $47.10 per square foot per year on a full-service gross basis. This represented an uptick of 0.3% from the prior quarter, indicating that landlords in certain submarkets are beginning to regain limited pricing power as demand stabilizes.
CBRE’s findings suggest that both Seattle and the Eastside are benefiting from gradual improvement in office metrics, even as vacancy and availability remain elevated by historical standards. With positive absorption, a small decline in vacancy, and incremental rent growth all occurring in tandem, the Puget Sound office market is entering 2026 with firmer footing than it had at the end of 2025.
